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Press release from CNW Group

Pacific Rubiales Energy Updates on Colombian Tax Authority Inspection to Bogota Offices

Friday, November 04, 2011

Pacific Rubiales Energy Updates on Colombian Tax Authority Inspection to Bogota Offices14:52 EDT Friday, November 04, 2011TORONTO, Nov. 4, 2011 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today that on Thursday, November 3, 2011, the Colombian Tax Authority (the "DIAN") visited its offices in Bogota within the context of its legal duty to inspect companies operating in Colombia.The inspection team from the DIAN was welcomed by the Company in accordance with the spirit of transparency. The DIAN was afforded full access to any relevant information.According to the public declarations of the Director of the DIAN (Diario La República, November 4, 2011), this visit is a normal occurrence, and is being conducted within the context of a general investigation of the Company's contractors and service providers. As such, it is not a direct investigation of the Company.This type of investigation is a routine procedure and is a normal occurrence in Colombia. The Company is therefore confident that there is no reason for concern arising from this official visit and the Company looks forward to continuous collaboration with the Colombian authorities.The Company would like to reiterate that its audited financial statements are publicly available according to the laws of Canada and Colombia and it is in full compliance with its continuous disclosure obligations.Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has working interests in 46 blocks in Colombia, Peru and Guatemala.The Company's Shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia under the ticker symbols PRE and PREC, respectively.Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.Cautionary Note Concerning Forward-Looking InformationThis news release contains forward-looking information. All information, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the Company's exploration and development plans and objectives) is forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia, Guatemala or Peru; changes to regulations affecting the Company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 10,2011 on SEDAR at www.sedar.com. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.For further information: Mr. Ronald Pantin Chief Executive Officer and Director Mr. José Francisco Arata President and Director (416) 362-7735 Christopher LeGallais Sr. Vice President, Investor Relations (647) 295-3700 Ms. Carolina Escobar V Investor Relations, Colombia (57 1) 628-3970